Analyzing the Canada Forced Labor Act's Influence on Your Brand
By understanding the influence of the Canada Forced Labor Act, you can strategically navigate its requirements and make informed decisions to safeguard your brand's integrity and align with ethical sourcing practices.
What is the Canada Forced Labor in Supply Chains Act?
The Canada Forced Labor in Supply Chains Act, or Bill S-211, is a recently passed law that compels companies to disclose their efforts in preventing the inclusion of tainted goods in their supply chains. It mandates companies to report on their due diligence procedures to address the issues of forced labor and child labor. Moreover, the Act modifies the Customs Tariff to explicitly prohibit the importation of goods into Canada that are produced or extracted using forced labor or child labor.
The Bill S-211 received royal assent on May 11, 2023, and is expected to take effect on January 1, 2024. The Act is currently in the implementation phase, with companies preparing to comply with the reporting requirements outlined in the legislation. The first reports under the Act are due by May 31, 2024.
Who does it apply to?
The Canada Forced Labor in Supply Chains Act (Bill S-211) applies to a wide range of companies, including numerous U.S.-based multinationals operating in Canada. It has significant implications for sectors such as manufacturing, retail, apparel, electronics, agriculture, mining, and extractive industries. Essentially, any company in Canada involved in importing goods or having supply chains connected to imports must comply with the Act's reporting requirements.
How to address it?
Companies are required to report on their efforts to prevent tainted goods from entering their supply chains and disclose their due diligence procedures related to forced labor.
Canada Forced Labor Act made easy with CommonShare
|Bill S-211 Requirements||Features in CommonShare|
|Compliance with import prohibitions|
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